Philippine banks have slightly reduced their exposure to the property sector in the third quarter, maintaining a cautious stance despite a recovery in Metro Manila’s condominium market.
Real estate loans grew 9.2 percent year-on-year to ₱3.1 trillion, while direct real estate investments fell 5.8 percent to ₱354.7 billion, driven by declines in debt and equity securities.
Residential loans climbed 11.2 percent, and commercial loans rose 7.3 percent, even as banks grapple with higher vacancy rates and a glut of units following the 2024 offshore gaming ban.
Metro Manila’s pre-selling condo market, particularly units priced between ₱2.5 million and ₱12 million, saw strong demand and fewer buyer backouts, indicating a stabilizing recovery.
Analysts noted that while banks remain cautious, developers’ promotions for ready-for-occupancy units continue to attract local and overseas Filipino investors.
Source: PhilNews24 | December 18, 2025
REAL ESTATE LOANS FACE BANK CAUTION AMID STRONG CONDO DEMAND
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